The spine of Indonesia’s economic system are small- to medium-sized companies, which account for 60% of its gross home product. Many nonetheless depend on guide bookkeeping, however the influence of COVID-19 has pushed small companies to digitize extra of their operations. BukuKas, one among a number of startups serving to SMEs go browsing, introduced at present it has raised a $10 million Series A led by Sequoia Capital India.
BukuKas launched in December 2019 as a digital bookkeeping app, however is rising its vary of companies with the purpose of making an “end-to-end software program stack” for small companies. Eventually, it desires to launch a SME-focused digital financial institution.
The funding, which brings BukuKas’ complete raised to this point to $22 million, included participation from returning traders Saison Capital, January Capital, Founderbank Capital, Cambium Grove, Endeavor Catalyst and Amrish Rau.
As of November 2020, BukuKas had a registered person base of three.5 million small retailers and retailers, and had crossed 1.eight million month-to-month energetic customers. During that month, the platform additionally recorded $17.four billion price of transactions on an annualized foundation, a determine equivalent to greater than 1.5% of Indonesia’s $1.04 trillion GDP.
BukuKas was based by chief government officer Krishnan Menon and chief working officer Lorenzo Peracchione, who met eight years in the past whereas working at Lazada Indonesia.
Menon’s earlier startup was Fabelio, an Indonesian on-line residence furnishings retailer. Every two months, he would go to smaller small cities in Indonesia, like Jepara and Cirebon, to supply furnishings.
“One of the issues that stood out was how totally different the Jakarta bubble is from the remainder of Indonesia, all the best way from the penetration of software program to monetary companies,” he informed TechCrunch. While speaking to retailers and suppliers, Menon realized that “nobody is constructing merchandise with them as the middle of the universe,” even though there are 56 million small companies.
Peracchione stated he and Mebon had been brainstorming startup concepts for some time. “When he informed me concerning the concept of fixing money stream visibility to SMEs, it instantly struck me,” Peracchione stated. “My dad was once a SME proprietor himself and through my childhood I expertise first hand the struggles and ups and downs related to working a small enterprise.”
The two determined to start out with digital bookkeeping after talking to 1,052 retailers as a result of serving to them maintain monitor of their enterprise efficiency would generate knowledge that might in flip allow entry to extra monetary companies.
“Our imaginative and prescient expanded into offering an end-to-end software program stack to digitize SMEs and assist them throughout a variety of actions as a prequel to constructing an SME-focused digital financial institution down the road,” Menon stated.
In addition to digital ledger options, BukuKas additionally sends cost reminders to patrons by WhatsApp and mechanically generates invoices, consists of an a list administration module and analyzes bills to assist companies perceive what’s impacting their revenue. The firm plans so as to add digital funds this month. During the remainder of 2021, it would additionally introduce extra options to assist companies promote on-line, together with instruments for on-line retailer fronts, a promotions engine and social sharing.
“With COVID-19, SMEs are dashing to get digitized, however they lack the proper mobile-first instruments to promote on-line in addition to to handle their enterprise,” stated Menon.
The app focuses on smaller Indonesian cities and cities, since about 73% of the retailers who use BukuKas are situated outdoors of tier 1 cities like Jakarta. Its customers symbolize big selection of sectors, together with retailers, meals distributors, grocery markets, cellular and telephone credit score suppliers, social commerce sellers, wholesalers and repair suppliers. BukuKas acquired digital ledger app Catatan Keuangan Harian, which has 300,000 month-to-month energetic customers, in September 2020 to broaden its market share in Indonesia.
With its massive variety of SMEs, Indonesia is seen as a fascinating marketplace for corporations serving to the drive towards digitization. For instance, India’s Khatabook, which was valued between $275 million to $300 million after its final spherical of funding in May 2020, not too long ago launched BukuUang in Indonesia. Other startups in the identical area embody Y Combinator-backed BukuWarung, Moka and Jurnal, all of which supply instruments to assist SMEs convey extra of their operations on-line.
India’s Khatabook raises $60 million to assist retailers digitize bookkeeping and settle for funds on-line
Menon stated BukuKas’ benefit is its workforce’s expertise constructing companies in Indonesia over the previous seven years. For instance, it launched a “Know Your Profits” module based mostly on person suggestions. It additionally provides a self-guided onboarding course of, a easy person interface and an offline mode for customers in areas with poor community connections.
“In basic, particular person options might be copied however we consider our ‘built-in end-to-end software program stack method,’ coupled with our obsessive give attention to simplicity, deep understanding of our customers and a superior stage of service will likely be key in differentiating BukuKas from competing choices,” he added.
BukuKas’ Series A will likely be used on person acquisition, its engineering and product groups in Jakarta and Bangalore and to introduce new companies for retailers. The firm might ultimately broaden into different Southeast Asia markets, however “within the quick time period consolidating and additional increasing our management within the SME area in Indonesia is our prime precedence,” stated Menon.
Indonesian fintech startup BukuWarung will get new funding so as to add monetary companies for small retailers